While grading a final exam a professor discovers that two students have virtually identical answers. He talks to each student separately and tells them that he is sure that they shared answers, but he cannot be sure who copied from whom. He offers each student a deal— if they both sign a statement admitting to the cheating, each will be given an F for the course. If only one signs the statement, he will be allowed to withdraw from the course and the other non-signing student will be expelled from the university. Finally, if neither signs the statement they will both get a C for the course because the professor does not have enough evidence to prove that cheating has occurred. Assuming the students are not allowed to communicate with one another, set up the relevant payoff matrix. Does each student have a dominant strategy?
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